My first reaction is to adhere to a rule that I learned very early on at Katz School of Business - University of Pittsburgh...

Following the lease agreement they have is right, and you know that being a licensed agent.Cash for keys might work, or it might just make it harder since they will imevitably ask for the cash up front for moving costs, then stay anyway if they know you arent local so you would have to go through the hassle of an eviction while they stay for free.check their names in the county justice court website for their eviction histort to make a good estimation on what their reaction would be.

@Rebecca McDonald The human brain can react very strongly and rapidly to certain things (in this case, your title, which could be interpreted as an impossibility) which makes people exhibit a strong reaction. 

I allow the neighbors reactions to dictate my final price (after studying current comps; for sale and sold).

But, what if its just a delayed reaction?

My "gut reaction": don't rent to friends! 

My gut reaction is fix it, but get more labor bids and stain the concrete in that room instead of replacing the floor.. 

I had the same reaction you did.

Just learn from them and turn them in a positive reaction.  

My first reaction is that the rate may be 10.99%, but it's really double that, because the origination fee is essentially the same amount.